In leasing process there participate three essential players, who gain an advantage of it in several ways.
The benefits for lessee:
- Immediate use of the equipment which enables the production improving, labor productivity increasing, growth of industrial potential and, respectively, enterprise profitability and marketability;
- Retains needed working capital meanwhile using leased equipment for operations. Repayment of periodic installments is accomplishable owing to the profits derived from productive use of equipment;
- Forecasts cash flow requirements as far as periodic payments are adjustable to seasonal fluctuations in revenues;
- Expends funds for any other production needs.
- Preserves available bank credit lines.
The benefits for vendor:
- Expands products distribution channels;
- Broadens the service ranges thus improving marketability;
- Reduces expenses associated with advertisement and customer search due to stable relationships with a leasing company;
- Increases the demand for equipment.
The benefits for lessor:
- Remains the owner of leased assets during a lease contract term and receives lease payments;
Enlarges his customers' portfolio.